EPFO sets limits on withdrawals from pension savings (PF) for various expense categories

The government has increased the salary threshold for mandatory coverage by the Employees' Provident Fund Organisation (EPFO). Previously, this threshold was 15,000 rupees per month, but it has now been raised to 25,000 rupees. This change is expected to extend social security coverage to over 510,000 additional employees earning a monthly salary between 15,000 and 25,000 rupees.

However, it is important to understand that raising the limit does not guarantee automatic eligibility for benefits under the Employees' Pension Scheme (EPS) for every worker. EPFO published information on its X account (formerly Twitter), clarifying which employees may qualify for EPS membership under the new limit and which do not. The employee's current salary and their previous status in the pension scheme are decisive factors.

The Ministry of Labour and Employment has set the new limit at 25,000 rupees for mandatory coverage through EPFO. This change became effective on September 17, 2026. The goal of this modification is to expand the scope of social security for workers who were previously excluded from mandatory coverage due to the old limit.

Under the new system, employees can receive benefits related to the Employees' Provident Fund (EPF), the Employees' Pension Scheme (EPS), and the Employees' Deposit Linked Insurance Scheme (EDLI). EPF accumulates funds for retirement; EPS provides pensions to eligible members; and EDLI offers insurance benefits to families in case of an employee's death.

The EPFO publication specifically emphasizes that the new threshold amount cannot be equated with automatic entitlement to EPS participation. Even with a monthly salary of 25,000 rupees or less, membership in the pension scheme will depend on existing rules and the employee's prior status. For those falling under the new limit, membership and contributions to EPS may apply according to established norms.

Nevertheless, employees earning above 25,000 rupees who have never been EPS members will not automatically gain pension scheme membership under the new provision. Therefore, if your salary is in the range of 15,000 to 25,000 rupees, you cannot assume EPS eligibility solely based on salary size; you must also check whether you were previously an EPS member and what program conditions apply to you.

The new salary limit may also affect the contributions made by the employer (company) to EPS. At a rate of 8.33% for EPS, if the pension salary limit increases from 15,000 to 25,000 rupees, the maximum monthly contribution could increase from approximately 1,250 to 2,083 rupees. However, this does not mean that every employee earning up to 25,000 rupees will automatically contribute 2,083 rupees monthly; the actual contribution amount depends on the employee meeting the requirements, the pension salary, and applicable rules.

After the introduction of the new limit, it is important to distinguish between these three schemes. EPF: Future savings are built up through contributions from the employee and the employer. According to the rules, the employee can use these funds upon retirement or in other stipulated circumstances.

EPS: Eligible members receive a pension according to the scheme's rules. Membership and pension entitlement are determined by separate conditions.

EDLI: This is an insurance scheme linked to eligible employees. In the event of a member's death, their family or nominee may receive a benefit according to the scheme's rules.

Thus, being covered by EPF and having the right to a pension under EPS are two different matters. The type of benefit an employee receives is determined by the rules of the respective program.

If you believe that your contribution to EPF or EPS should be made according to the new rules after the new limit comes into effect, but this is not happening, you should first contact your company's HR department or your employer. If the issue is not resolved at this level, you can file a complaint through the EPFO EPFiGMS dispute resolution portal. When filing a complaint, it is recommended to have payslips, UAN, and other relevant employment documents ready to facilitate verification and understanding of the situation.

Future accumulation funds (PF) can be a significant help for working people in unforeseen situations, such as paying for children's education, treating family members, weddings, or building a home. However, the traditional process of withdrawing funds from a PF account and receiving money into a bank account requires waiting.

Currently, the Employees' Provident Fund Organisation (EPFO) is working to provide its members with the option to withdraw PF funds through the Unified Payments Interface (UPI). EPFO plans to integrate the UAN portal with members' UPI accounts and is developing a new mobile application for this purpose. The proposed system will allow the use of various UPI applications, such as BHIM, PhonePe, and Google Pay, alongside bank accounts.

According to the report, under this feature, eligible members will be able to withdraw up to 75% of the amount in their account. The formal launch of this service is expected by the end of December 2026.

Currently, to withdraw funds from PF, members must submit an online application through the UAN portal. After this, the application is verified by EPFO, and the funds are transferred to the bank account. This process can take some time. The goal of the new system is to reduce this waiting period, and EPFO, together with banks, is trying to enable PF withdrawals via UPI. This feature is currently in the testing phase.

A limit on withdrawing funds from the PF account will be set in the new system. According to a senior government official, members who meet the established conditions will be able to withdraw up to 75% of their EPF balance via UPI. This means that it is not possible to withdraw the entire amount accumulated in the account at once. According to current rules, at least 25% of the funds must be maintained in the account.

PF funds often serve as support during difficult periods in people's lives, helping with children's education, weddings, illness treatment, or home construction. The new system aims to simplify access to these funds for eligible members during such times. If the UPI withdrawal feature is launched, a reduction in the lengthy application process for fund disbursement can be expected. Nevertheless, full information on the conditions and criteria for withdrawal will only become clear after the service launch.

The report indicates that the total EPFO fund has reached approximately 26 trillion rupees. More than 300 million members are registered in the organization, of which about 75 million are active contributors. It is expected that the launch of PF withdrawal via UPI will particularly benefit these active members. However, the actual benefit will depend on who exactly will have access to this service and what withdrawal rules will be established.

Now, there is no need to apply separately to transfer the Provident Fund (PF) money from the old company's account to the new account when changing jobs. The Employees' Provident Fund Organisation (EPFO) has introduced a facility for automatic transfer of PF balance for eligible members with a Universal Account Number (UAN) linked to Aadhaar. This means that after starting a job at a new company and entering the necessary details, the amount from the old PF account will automatically move to the new account.

This change is particularly beneficial for employees who frequently change jobs. Previously, a separate request had to be filed for PF transfer, and the process took a considerable amount of time. Now, EPFO aims to simplify this task and keep employees' retirement savings in one place.

In the old system, after changing jobs, the employee had to provide their UAN information to their new company. Subsequently, it was mandatory to file a separate request to link and transfer the money from the old account to the new account. This transfer request could be done online through the EPFO portal, although an offline option was also available in some situations.

After this, the required verification by the Employer and EPFO would be completed, after which the funds from the old account would be transferred to the new account. During this time, delays could occur due to any error in the information or other reasons. For employees who change jobs frequently, managing records of various PF accounts also became a complex task.

EPFO has streamlined the PF transfer process through its Centralized IT Enabled Services (CITES) platform. Under this system, the PF balance of eligible members with Aadhaar-linked UAN can be automatically transferred. This process can be understood in three steps:

1. Provide your current UAN while joining the new company. It is important to use the same UAN instead of creating a new one when changing jobs.
2. The necessary information related to your appointment and PF will be entered into EPFO records by the new company.
3. Once the eligibility conditions are met, the balance of the old PF account will be automatically transferred to the new account. There will be no need to submit a separate online or offline transfer request for this.

It is important to note that this facility applies only to UANs linked to Aadhaar and related eligibility criteria. Therefore, it is crucial to ensure that your UAN is linked to Aadhaar and all your information is accurate.

The employee's UAN remains unchanged when changing jobs, even if a new PF account is associated with the new company. The automatic transfer facility will make it easier to bring the deposited amount from the old account to the new account, providing several benefits to employees:

• Reduced paperwork: The need to file separate applications repeatedly for PF transfer will end.
• Better savings calculation: Understanding the total savings becomes simpler as the PF amount deposited in the old job comes into the new account.
• Assistance in maintaining service records: Employment records of different jobs can be viewed under a single UAN.
• Time saving: The need to apply separately for the transfer and wait for its status will be reduced.

However, it is important to clarify that PF transfer and final settlement are two separate processes. The automatic transfer facility does not mean that every type of claim will be automatically approved.

If you have recently changed jobs, it is necessary to check whether your new job and PF account information has been correctly entered in the EPFO records. To do this, the following steps should be followed:

If the new company information is not displayed or there is an error in the record, first contact your company's Human Resources Department (HRD). Any discrepancy in UAN, Aadhaar, and other necessary information must be corrected.

EPFO is making several changes to simplify its member service platform. These efforts include speeding up the PF claim process, improving payment systems, and reducing dependence on various offices. Automatic PF transfer is also a step taken in this direction. If you have joined a new company, first use your old UAN and check your information along with Aadhaar linking. This will help in taking advantage of the facility that simplifies the PF transfer process.